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Pension Analysis Report

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Pension Analysis Report

Pension Analysis Report

Published in: Economy & Finance, Business
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  • 1. PENSION TRANSFER REPORT Money Purchase Arrangements CLIENT NAME: Shelia Brown Client Ref: SBrown FROM: Friends Life Personal Pension TO: Nucleus Pension Account ADVISER NAME: Richard Bishop REPORT PRINT DATE: 30/01/2012 Page 1
  • 2. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Analysis ReportIntroductionThe purpose of this analysis is to provide information, which will assist you to make an informed decision, onwhether or not, to transfer all or some of your pension funds to an alternative Pension arrangement.This analysis does not, on its own, show whether or not transferring your funds is advisable, as that also depends onmany other factors, such as your “attitude to risk” and your personal circumstances and objectives. It does,however, give an indication of the likelihood of being able to match or exceed the fund provided by the Existing planswith a transfer to an alternative plan based on a charges comparison.Projections have been provided to indicate the possible fund value at retirement based on assumed growth ratesthis is compared with the projected fund if invested in: • Nucleus Pension AccountThe analysis will show the results of this comparison as:1. The estimated fund value at retirement from the providers.2. The estimated annual investment return needed, from the Proposed Plan, to provide a fund at retirement age of 65 equal to that of your Existing arrangements.3. The estimated percentage difference between the proposed alternative Pension policy and your Existing arrangements at retirement.4. The immediate effect on your fund as a result of the transfer.5. The fund values that may be paid as a death benefit immediately following transfer.This analysis needs to be read in conjunction with the illustrations provided by the recommended provider and anyrecommendations made by your adviser.The analysis has been based on your personal information and the details supplied by your existing plan providers.Personal Pension PoliciesThese policies operate on the “Money Purchase” basis (also known as “Defined Contribution”) & provide a fund ofmoney, at retirement, which is then used to purchase a pension and normally a Pension Commencement LumpSum. The amount of the fund at retirement is dependent upon the level of contributions paid, the investment returnon the contributions once invested, and the charges under the policy.At retirement the fund is normally used to provide a pension by purchasing an annuity in the open market. Theamount of pension provided is therefore dependent upon the annuity rates then available in the market. Page 2
  • 3. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798This report has been based on the following information. Please make it known if any part of this information isincorrect as it may affect the result of this analysis. Personal Information Name Mr Shelia Brown Date of Birth 30/04/1958 Sex Female Marital Status N/A Spouse/Civil Partners Date of Birth N/A Other Dependants Unknown Health Status N/A Attitude to Risk N/A Employment Status Employed Retirement Age for Analysis 65 Plan for analysisPlan Name Friends Life Personal PensionFund Value £8,698.00Transfer Value £8,698.00Fund Valuation Date 24/01/2012FundsFL F&C Lifestyle Balanced AL(inet)-Pen 100% Page 3
  • 4. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798Notes & Assumptions• The illustrations take into account the current charging structure of the Nucleus Pension Account and your existing arrangements.• The fund available at retirement will depend upon the actual growth in your selected plan and the funds. The figures are not guaranteed.• All firms use the same rates to illustrate how funds may be converted into a pension but their charges vary. The maximum that growth rates can be illustrated at is set by the UK Financial Services Authority (FSA), some providers however choose to show lower rates. This comparison is on a like for like basis.• The actual transfer value received may be higher or lower than that shown due to investment fluctuations between the calculation date of this analysis & completion of the transfer.• You should be aware the investment choice available with Nucleus may differ from your current providers. This could impact on the future performance of your fund.• The figures illustrated for the plan considered assume that investment will be with the provider’s standard default fund & charges unless otherwise specified.• When projected fund values are shown in Today’s terms inflation is assumed to be 2.5%pa. Page 4
  • 5. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 COMPARISON AT AGE 65FUNDS TRANSFERRED TO Nucleus Pension AccountThe figures below take into account your Friends Life Personal Pension transfer value of £8,698.00. Projected Fund (Paid Up) at proposed age of 65Assumed Growth Rates 5% 7% 9%Existing Plan - Friends Life Personal Pension £12,100 £14,900 £18,400New Plan - Nucleus - Pension Account £12,600 £15,600 £19,200Rate of Return Required from Nucleus 4.59% (-0.41%) 6.55% (-0.45%) 8.56% (-0.44%)The effect this will have on the fund if moved to Nucleus +4.47% +4.9% +4.62% Medium rate growth results comparison FUND VALUE COMPARISON On the day of transfer, the value of the funds in your existing arrangements and the proposed replacement plan are as follows: Friends Life Personal Pension £8,698.00 Nucleus - Pension Account £8,263.10 Page 5
  • 6. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 PROPOSED PENSION PLAN Standard ChargesNucleus Pension AccountSingle Premium/Transfer Commission 5%Asset Charge 0.75% paAnnual Management Charge Tiered 0.35%Fund Value/AMC: £0-£999,999=0.35%, £1,000000-£1,999999=0.3%, £2,000000-£2,999999=0.25%, £3,000000-£4,999999=0.2%, £5,000000>=0.15%The value of these standard plan charges may vary depending on the size of the fund or investment, and arebased on an assumed investment fund and the level of commission specified. If other funds or level of commissionare selected the results of the analysis would be different. Adviser CommissionSingle Premium/Transfer: Initial 5% Fund Based 0%The cost of commission is included in the charges listed above.Funds have been selected for the various sectors based on value of funds under management.Fund Name Split % Initial % AMC %Architas Multi-Manager Balanced R Acc (100%)Architas Multi-Manager Balanced Ret Acc 100 0 0.75Default Fund 0 0.75Adjustment to charges 0 0 Page 6
  • 7. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Early Transfer AnalysisThis table shows the estimated transfer value away from the proposed pension product, Nucleus - NucleusPension Account, at yearly intervals across the required term.The colour of each cell provides a quartile indication of how it compares to the other analysed products: (1) 1st Quartile (Best) (2) 2nd Quartile (3) 3rd Quartile (4) 4th Quartile (Worst) Year 5% 7% 9% 1 £8,581 (1) £8,744 (1) £8,908 (1) 2 £8,911 (1) £9,254 (1) £9,603 (1) 3 £9,254 (1) £9,793 (1) £10,353 (1) 4 £9,611 (1) £10,364 (1) £11,161 (1) 5 £9,981 (1) £10,969 (1) £12,033 (1) 6 £10,365 (1) £11,608 (1) £12,972 (1) 7 £10,765 (1) £12,285 (1) £13,985 (1) 8 £11,179 (1) £13,001 (1) £15,077 (1) 9 £11,610 (1) £13,759 (1) £16,254 (1) 10 £12,057 (1) £14,561 (1) £17,523 (1) 11 £12,521 (1) £15,409 (1) £18,891 (1) Page 7
  • 8. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 LUMP SUM AT NORMAL RETIREMENT AGE - 65TH BIRTHDAYSet out below is a comparison of the estimated Pension Commencement Lump Sum that may be provided onretirement at proposed age of 65 Existing Plan Nucleus Pension Account £3,720 £3,900 Value of Pension Commencement Lump Sum Assuming 7% GrowthAssumptions1. The value of the investments in the Nucleus Pension Account will grow at 7% pa before charges are deducted.2. Retail prices Index (RPI) 2.5%.3. The UK Standard Lifetime Limit will be £1.5m from 06.04.2011. (This is only relevant if you have a ‘ProtectedPension Commencement Lump Sum’ in respect of membership of the benefits accrued by the scheme before 6thApril 2006). Page 8
  • 9. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 DEATH BENEFIT COMPARISONOn the day of transfer, the capital value of the death benefits under your existing arrangements and the proposedreplacement plan are as follows:Friends Life Personal Pension £8,698.00Nucleus Pension Account £8,263.10If the death benefit available after transfer is lower than that provided by the existing arrangements, considerationshould be given to replacing the shortfall.A lump sum death benefit is available up to 100% of the fund. If married any Protected Rights must be used tosecure a spouse’s pension. A tax charge may be levied on any amount above the Lifetime Limit PensionCommencement Lump Sum allowance. Page 9
  • 10. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Summary Transfer ComparisonProjected Fund Value at proposed retirement age 65Provider Plan 5% 7% 9%Nucleus Nucleus Pension Account £12,600 £15,600 £19,200Nucleus Nucleus Pension Account £12,600 £15,600 £19,200 WrapExisting Plan £12,100 £14,900 £18,400AXA Wealth Elevate Explicit (unbundled) £11,000 £13,600 £16,700 Charging StructureAXA Wealth Elevate Composite (Bundled) £10,300 £12,800 £15,900 Charging StructureTransact Pension Plan £9,980 £12,400 £15,400Cofunds Pension Account (SIPP) £8,940 £11,300 £14,200 (provided by Suffolk Life)Cofunds Pension Account Wrap £8,940 £11,300 £14,200 (provided by Suffolk Life)Ascentric Pension Account £7,970 £10,200 £12,900 Page 10
  • 11. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Investment Performance ReportNucleus Pension Account Past 5 Years Growth Performance InformationFund Name 2006 2007 2008 2009 2010FL F&C Lifestyle Balanced AL(inet)-Pen** n/a n/a -21.93 22.05 13.29Architas Multi-Manager Balanced Ret Acc 8.71 5.48 -21.03 25.64 15.07 Past 12 Months Growth Performance InformationFund Name Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 11 11 11 11 11 11 11 11 11 11 11FL F&C Lifestyle 5.95 -0.25 0.20 0.63 0.97 -1.01 -0.29 -1.07 -8.46 -2.20 6.05 2.01Balanced AL(inet)-Pen**Architas Multi-Manager 5.06 -0.57 -0.57 1.09 1.33 -1.19 -0.25 -0.25 -7.89 -2.14 5.72 1.40Balanced Ret Acc** Existing Scheme Fund Past 12 Months Growth PerformancePlease note that past performance cannot be a guide to the future and investment returns cannot be guaranteed.Information produced by Selectapension Ltd in conjunction with data supplied by Lipper Ltd and other externalsources. Page 11
  • 12. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 PENSION TRANSFER COMPARISON FILE SUMMARY Name Mr Shelia Brown Date of Birth 30/04/1958 Sex Female Marital Status N/A Spouse / Civil Partner DOB N/A Other Dependants Unknown Health Status N/A Attitude to Risk N/A Desired Retirement Age Proposed Retirement Age 65 TRANSFER INTO Nucleus Pension AccountThe figures below take into account your Friends Life Personal Pension transfer value of £8,698.00. Projected Fund (Paid Up) at proposed age of 65Assumed Growth Rates 5% 7% 9%Existing Plan - Friends Life Personal Pension £12,100 £14,900 £18,400New Plan - Nucleus - Pension Account £12,600 £15,600 £19,200Rate of Return Required from Nucleus 4.59% (-0.41%) 6.55% (-0.45%) 8.56% (-0.44%)The effect this will have on the fund if moved to Nucleus +4.47% +4.9% +4.62% FUND VALUE COMPARISON On the day of transfer, the value of the funds in your existing arrangements and the proposed replacement plan are as follows: Friends Life Personal Pension £8,698.00 Nucleus - Pension Account £8,263.10 Page 12
  • 13. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Record of Input Data Print Date 30/01/2012Client DataRefTitle MrForename SheliaSurname BrownSex FemaleDate of Birth 30/04/1958Partners Date of Birth N/AMarital Status N/AHealth Status N/AOther Dependants UnknownEnhanced / Primary Protection Applicable UnknownAttitude to Risk N/AEmployment Employed Plan(s) for Transfer Scheme Name Friends Life Personal Pension Type Personal Pension Fund Valuation Date 24/01/2012 Fund Value £8,698.00 Fund Value Transfer £8,698.00 Pre 97 Protected Rights TV £0.00 Post 97 Protected Rights TV £0.00 Current Death Benefits Value £8,698.00 Proposed Retirement Age 65 Monetary Values / Todays terms MonetaryGrowth RatesGrowth Rates Low Med High 5% 7% 9%Projections at age 65.Projections Fund - Paid Up £12,100.00 £14,900.00 £18,400.00 Page 13
  • 14. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Plans Selected For ComparisonProvider Selection All SelectedNucleus Pension Account (Wrap) YESTransact Pension Plan YESCofunds Pension Account Wrap (provided YESby Suffolk Life)Ascentric Pension Account YESCofunds Pension Account (provided by YESSuffolk Life)AXA Wealth Elevate Composite (Bundled) YESNucleus Pension Account YESAXA Wealth Elevate Explicit (unbundled) YES Page 14
  • 15. Client Name: Shelia BrownAdviser Name: Richard BishopCase Reference: 267798 Commission / FeesAdviser Commission:The commission quoted is based on the standard commission terms available for the charging structures. It doesnot take into account any special terms that the Financial Adviser may agree with the provider.Single Premium/Transfer: Initial 5% Fund Based 0%Commission at proposed age 65Provider Plan Fund (7%) Initial (Single) Fund-Based TotalNucleus Nucleus Pension £15,600 £434 £0 £434 AccountNucleus Nucleus Pension £15,600 £434 £0 £434 Account WrapAXA Wealth Elevate Explicit £13,600 £434 £0 £434 (unbundled) Charging StructureAXA Wealth Elevate Composite £12,800 £434 £0 £434 (Bundled) Charging StructureTransact Pension Plan £12,400 £434 £0 £434Cofunds Pension Account £11,300 £434 £0 £434 (SIPP) (provided by Suffolk Life)Cofunds Pension Account Wrap £11,300 £434 £0 £434 (provided by Suffolk Life)Ascentric Pension Account £10,200 £432 £0 £432 Page 15

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